Why is it in the news?
RBI issued draft “Commercial Banks – Responsible Business Conduct” Second Amendment Directions, 2026.
Regulates conduct of recovery agents from 1 July 2026.
Category: Economy
Important Points:
● Prohibits abusive language, threats, anonymous calls and public humiliation
● Restricts contact outside prescribed hours
● Defines intimidation and misleading representation as harsh practices
● Banks must establish formal recovery policy and code of conduct
● Includes eligibility, due diligence and performance standards for agents
● Mandates dedicated grievance redressal mechanism
● Strengthens borrower protection and institutional accountability